Case Study 3, instructions in attachment, as well as template.

ACCT504 - Case 1 - Part A Date 6/2 Account Titles Debit Cash Common Stock 55,000 6/3 Supplies Equipment Accounts Payable 3,000 5,200 6/4 Cash Service revenue 6,300 6/7 Land Cash 37,000 6/11 Accounts receivable Service revenue 1,200 6/16 Accounts Payable Cash 2,800 6/17 Utilities expenses Cash 230 6/18 Cash Accounts receivable 700 6/22 Utilities expenses Cash 400 6/29 Cash Service revenue 5,000 6/30 Salary expense Cash 4,300 6/30 Dividends Cash 3,000 Credit 55,000 8,200 6,300 37,000 1,200 2,800 230 700 400 5,000 4,300 3,000 ACCT504 - Case 1- Part A Bal. CASH 55,000 6/7 6,300 6/16 700 6/17 5,000 6/22 6/30 6/30 19,270 6/3 Supplies 3,000 6/3 Equipment 5,200 Bal 3,000 Bal 5,200 6/2 6/4 6/18 6/29 COMMON STOCK 6/2 55,000 Bal. 55,000 37,000 2,800 230 400 4,300 3,000 Accounts Payable 6/16 2,800 6/3 8,200 Bal Service revenue 6/4 6,300 6/11 1,200 6/29 5,000 Bal 12,500 5,400 6/7 Land 37,000 Accounts receivable 6/11 1,200 6/18 700 Bal 37,000 Bal 6/22 Bal 500 Utility expenses 630 0 Salary expense 6/30 4,300 Bal 6/30 630 Dividends 3,000 Bal Bal 3,000 4,300 128 ACCT504 - Case 1- Part A Account titles Cash Accounts receivable Supplies Equipment Land Accounts payable Common Stock Dividends Service revenue Salary expense utilities expenses Gordon Contruction, Inc. Trial Balance June 30, 2014 3,000 4,300 630 Total Q1 Q2 Q3 Debit 19,270 500 3,000 5,200 37,000 72,900 Credit 5,400 55,000 12,500 72,900 Please answer the 3 questions for Requirement 4 below. How much is the total resources? 64,970 How much does the business owe? 60,400 Was June profitable and by how much? 7,570 130 ACCT504 - Case 1 - Part B Month End Adjusting Entries Date Jun 30 Jun 30 June 30 Account Titles Debit Accounts receivable Service revenue 3,100 Supplies expenses Supplies 2,300 Salary expenses Salaries payable Credit 6,100 3,100 2,300 6,100 ACCT504 - Case 1- Part B Gordon Construction, Inc. Trial Balance Work Sheet June 30, 2014 Trial Balance Account titles Debit Credit Cash 19,270 Accounts receivable 500 Supplies 3,000 Equipment 5,200 Land 37,000 Accounts payable 5,400 Salary payable 0 Common Stock 55,000 Divdends 3,000 Service Revenue 12,500 Salary Expense 4,300 Utilities Expense 630 Supplies xpense E 0 Total 72,900 72,900 Key each adjusting entry by letter in column i. When you plug in your adjustments below into columns j and k, the adjusted trial balance will change automatically. Adjusted Adjustments Trial Balance Debit Credit Debit Credit 19,270 3,100 3,600 2,300 700 5,200 37,000 5,400 6,100 6,100 55,000 3,000 0 3,100 15,600 6,100 10,400 630 2,300 2,300 11,500 11,500 82,100 82,100 Case Study 1 Grading Rubric Students Parts Criteria Part A Requirement 1 Requirement Points Record the Journal 30 Entries Part A Requirement 2 Post transactions to 15 the General Ledger Taccounts Prepare the Trial Balance 15 Part A Requirement 3 Answer the 3 questions 10 Record Adjusting Journal Entries 15 Part B Requirement 1 15 Part B Requirement 2 Prepare Adjusted Trial Balance Total Points 100 Part A Requirement 4 Please note: Your work will be graded based on accuracy but there is always the opportunity for partial credit for a ACCT504 Case Study 3 (Learning Objective 5: Construct and use a cash budget) Nathan Farmer, chief financial officer of Wang Appliance Store, is responsible for the company's budgeting process. Farmer's staff is preparing the Wang cash budget for 2014. A key input to the budgeting process is last year's statement of cash flows, which follows (amounts in thousands): Wang Appliance Store Statement of Cash Flows 2013 (in thousands) Cash Flows from Operating Activities Collections from customers Interest Received Purchase of inventory Operating expenses Net cash provided by operating activities Cash Flows from Investing Activities Purchase of equipment Purchase of investments Sale of investments Net cash used for investing activities Cash Flows from Financing Activities Payment of long term debt Issuance of Stock Payment of cash dividends Net cash provided by financing activities $51,000 500 (36,000) (10,200) 5,300 (3,500) (500) 1,000 (3,000 ) (400) 2,000 (500) 1,000 Cash Increase (decrease) in Cash Cash, beginning of year Cash, end of year Requirements 3,300 2,900 5,900 1. Prepare the Wang cash budget for 2014. Date the budget simply \"2014\" and denote the beginning and ending cash balances as \"beginning\" and \"ending.\" Assume the company expects 2014 to be the same as 2013, but with the following changes: o a. In 2014, the company expects a 20% increase in collections from customers and a 30% increase in purchases of inventory. o b. There will be no sales of investments in 2014. o c. Wang does not plan to issue stock in 2014. o d. Wang plans to end the year with a cash balance of $5,550. CASE STUDY 3Cash Budget Template Wang Appliance Store Cash Budget For 2014 Month Cash balance Add: Receipts Collections from customers Receipt of Interest Total Available Cash 0 Budgeted Cash Payments Less: Disbursements Purchases of inventory Operating expenses Purchase of equipment Purchase of Investments Payment of Dividends Payment of long-term Debt Total disbursements Cash available (needed) before new financing - Budgeted cash balance ending Cash available for additional investments or (new financing needed) - CASE STUDY 3Cash Budget Template Wang Appliance Store Cash Budget For 2014 Month Cash balance Add: Receipts Collections from customers Receipt of Interest Total Available Cash 0 Budgeted Cash Payments Less: Disbursements Purchases of inventory Operating expenses Purchase of equipment Purchase of Investments Payment of Dividends Payment of long-term Debt Total disbursements Cash available (needed) before new financing - Budgeted cash balance ending Cash available for additional investments or (new financing needed)